Titan Company Ltd, parent company of India’s largest jewellery retailer Tanishq,  reported what it called “an exceptional growth in profits” for Q2 FY 2017-18. 

“The profit before tax is Rs 424 crores for Q2, a growth of 73.8%; and Rs 795 crores for the first half, a growth of 89.1%,” the Company said in its announcement.

Titan’s   income  from operations for the period July to September 2017, touched Rs 3,378 crore  as compared to  last year's income for the same period of Rs 2,620 crore; registering a growth of 28.9%.

The Company’s income for April to September 2017, that is,  the first half of this financial year, stands at Rs 7,322 crore  marking  a growth of 35.8% over H1 of the previous financial year. 

What was remarkable is Titan’s net profit for Q2 FY 2017-18  which stood at  Rs. 305 crore, compared to  Rs 178 crore for the same period of the previous year, recording a growth of a whopping 70.9%.  For the six months ended September 2017, Titan’s net profit touched  Rs. 572 crore.

Titan’s Jewellery division has been making a handsome contribution to the Company’s earnings. It “had another good quarter following an extremely encouraging first quarter and recorded an income of Rs. 2,710 crore  as compared to Rs 1987 crore last year,” the Company reported.

Titan’s jewellery business grew by 37%  in Q2 2017-18 as compared to the same period in the previous year.

The   watches business contributed  Rs 570 crore  to the Company’s revenue in the period,  compared to  Rs. 523 crore earned  in the previous year, recording a growth of 8.8%.

“The Jewellery division continues to gain market share and watch business is seeing very good volume growth as well,” Titan elaborated. “The Eyewear business grew by 3.5% in the quarter, recording an income of Rs 98 crore  as against Rs 95 crore  last year. Other segment of the company comprising accessories grew by 53% in Q2 recording an income of Rs. 26 crore. The last year’s income for this segment in Q2 was Rs. 17 crores.”

Titan Company had a total of 1415 stores, as on 30th September 2017; with a retail area crossing 1.8 mn sq. ft nationally for all its brands. “The Eyewear business closed down unprofitable locations even as it opened 26 new stores in the 6 months,” the Company reported. “The Jewellery business has almost completed conversion of 19 of the erstwhile Goldplus stores into Tanishq. This move has yielded greater visibility and profits for the Company.”

Bhaskar Bhat, Managing Director of the Company commented: “Our Jewellery business was impacted by the new PMLA regulations at the beginning of the quarter but the roll back, just before the festive season provided a boost to the business. The watches business also witnessed growth across most channels with the festive season build up appearing very encouraging. However, the slowdown in international markets continued. The sunglass activation did well. Driven by the performance of all divisions, led by jewellery, the growth profit of 74% is very heartening.”